Terminal Value
John Wiley & Sons, Inc. (JW-B)
$53.18
-0.64 (-%)
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 5.98 |
| Free cash flow (t + 1) | 234.04 |
| Terminal Value | 5,880.41 |
| Present Value of Terminal Value | 4,398.33 |
Now that we’ve estimated the free cash flow generated over the five-year forecast period, we need to estimate the value of John Wiley & Sons, Inc.’s cash flows after that period (if we don’t include this, we would have to assume that John Wiley & Sons, Inc. stopped operating at the end of the five-year forecast period). To do so, we’ll determine the company’s terminal value.